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PENSION ARREAR RECEIVED - EPS 95 SCHEME

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SARAN KUMAR

Accountant

105 Points Posted on 25 July 2026

Hello Sir/Madam,

I have received EPFO (EPS-95) pension arrears relating to the period 2018 onwards, and the entire arrears were paid during FY 2025–26.

I have the following queries:

Am I eligible to claim relief under Section 89(1) on these EPFO/EPS pension arrears?
Can these EPFO pension arrears be treated in the same manner as salary arrears for the purpose of claiming relief under Section 89(1) of the Income-tax Act?

Replies (2)

Quick Summary

If you've received EPS 95 pension arrears for periods from 2018 onwards, you are eligible to claim tax relief under Section 89(1) of the Income-tax Act. These arrears are treated similarly to salary arrears, preventing a higher tax burden due to income bunching. To claim this relief, you must file Form 10E online via the e-filing portal before submitting your Income Tax Return (ITR).

Aashok Kumar Sharma

Finance/Compliance Consultant

67414 Points Posted on 26 July 2026

Question 1: Yes, you are fully eligible to claim tax relief under Section 89(1) on EPS-95 pension arrears received for past years.
Question 2: Yes, pension arrears are treated similarly to salary arrears under Rule 21A to relieve you from the higher tax burden caused by bunching multiple years of income into FY 2025–26.
Action Required: You must file Form 10E online on the e-filing portal before filing your ITR to successfully claim this relief.